Good morning all,
Well, here's the $64,000 question! Where will Gold go next? I'll give you the technical view since that's the only one that really matters.
DEC GOLD hit a new high of $802.80 overnight but is now trading at around 791.00. The market is certainly in overbought territory but I've seen too many overbought markets continue to rally without so much as a pause in its ascent. But the $800.00 psychological level is clearly proving a formidable obstacle. This may just be the point where the market says "No mas!" and starts a bit of a retracement. Some of my technical indicators are beginning to weaken as the market makes new highs and that is certainly troubling. Momentum oscillators are turning lower as well so don't be surprised if this market stumbles in the near-term. The long-term outlook remains unchanged. If you are just now starting to look at this market (what the hell are you waiting for?) buy APR GOLD futures and options at this juncture on dips or a breakout close above today's high. More later.
Dale F. Doelling
President and Chief Market Technician
Trends In Commodities
